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Finance Tightening Is the First Sign of a Leadership Problem
Finance doesn’t slow companies, but ambiguity does.

Read time: 2.5 minutes
The delayed response and increased examination reflect a cautious finance organization. They’re not concerned with how much money is involved, but rather with how uncertain things are. When you’re making a bet with uncertainty, it makes every dollar spent feel like a gamble... this creates a continual fallacy of indecision.
How Do CEOs Restore Trust & Momentum?
1. Finance tightening restrictions are a signal of solidified belief, not a signal of increasing cost.
During times of uncertainty, having faith in your decisions is more important than the numbers you measure against them.
The CEO needs to consider and understand what area does not have confidence vs. which area has a high cost.
2. When you say “we are still exploring/researching the options,” it may sound strategic, but it does not build confidence.
When you continue to explore without making any commitments. It can appear you are just drifting.
The CEO should make very clear what is being fully committed to as the main bet.
3. CFOs don’t resist the concept of going fast; they resist the concept of having the risk undefined.
When there is a risk that is not defined, control will fill the void.
The CEO should help define how much they are willing to lose to make this wager compromise.
4. Stop questioning why Finance is holding you back from proceeding with this new idea.
Instead, they should be thinking, “What is the wager that I haven’t fully committed to or declared as being able to move forward with?”
5. Flexibility is overrated. Focus is about survival.
When there are too many options available, your level of confidence and momentum can be diluted significantly.
The CEO needs to get rigid with the strategy to a vice-like squeeze (yet executable).
6. Trust is developed when you announce your wager.
The best CEOs are not going to waste their time debating Finance about it.
They will announce their wager risk and downside.
The CEO should make it publicly known what the wager is and act upon it.
💡Key Takeaway:
When finance gets anxious, it is seldom about cash flow... rather, it is about confidence level. The velocity would be restored as soon as the CEO identifies the wager and accepts the risk.
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